State Bank of India, the country’s biggest lender by assets, has clocked 10% drop in its Q4FY25 net profit on the back of narrower net interest margin growth. Although, the Reuter’s Poll indicated that it managed to beat analysts estimates, Q4 Net profit came in at Rs 18,643 crore Vs record profit of Rs 20,698 crore in Q4FY24. The bank’s net interest income, or the difference between interest earned on loans and paid on deposits, increased 2.7% to Rs 42,775 crore rupees Vs Rs 41,655 crore in Q4FY24, up 2.69%.
SBI Q4FY25: NIM slips 32bps
But its domestic net interest margin, the difference between the interest rate earned and the rate paid out, fell to 3.15%, below the 3.47% result a year earlier. This is down 32 bps YoY. All eyes will be on how this impact the entire banking sector stocks and specifically the State Bank of India share price will be in focus on Monday morning.
The Reserve Bank of India lowered its key repo rate in April for a second consecutive time and changed its monetary policy stance, signalling room for more cuts ahead as it seeks to boost the sluggish economy. State Bank of India’s loan growth was 12.03%, while deposits grew 9.48%. Its gross non-performing assets ratio improved to 1.82% from 2.13% in the prior quarter.
SBI Q4FY25: Asset Quality
A look now at the overall asset quality for SBI in Q4. The net NPA ratio came in at 0.47%, about 10 bps lower YoY from 0.57% in Q4FY24. The PCR or the Provision Coverage Ratio (PCR) at 74.42% is down 60 bps YoY from 75.52% in Q4FY24. The Bank’s slippage ratio for Q4FY25 also came in lower by 1 bps and stands at 0.42%.
SBI Q4: Annual Dividend announced
The State Bank of India board also announced annual dividend of Rs 15.90 per equity share for FY25. The record date for determining the eligibility of members entitled to receive dividend on equity shares is Friday, May 16, 2025. The dividend payment date is fixed as May 30. Besides, the board has approved raising equity capital of up to Rs 25,000 crore (including share premium) in one or more tranches during 2025-26 through Qualified Institutional Placement (QIP)/Follow on Public Offer (FPO) or any other mode.